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Fixed-Term Employment (FTE)

Indian Economy

  • PYQs8
  • Articles1
I

Background

FTE is a significant aspect of labour market flexibility with implications for worker rights, job security, and the informalisation of the economy. UPSC examines such policy tools and their socio-economic consequences.

Fixed-Term Employment refers to a contractual employment arrangement where an employee is hired for a specific, predetermined period, often for a particular project or season, rather than on a permanent basis, offering flexibility to employers.

II

Facts & tables

Introduction in India
Formally introduced into India's labour law framework by the Industrial Relations Code, 2020.
Employer Flexibility
Allows employers to hire workers for a fixed duration without the complexities of permanent employment.
Worker Vulnerability
Concerns exist due to the lack of specified minimum tenure or limits on the number of contract renewals in the rules.
Risk of Informalisation
Potential for even regular positions to be converted into FTEs with unlimited renewals, leading to job insecurity and informalisation.
Static syllabus anchors
Type Reference
Conceptual area Labour Market Flexibility
Conceptual area Worker Rights
III

Prelims angle

Prelims angle: Statement-based questions

Prelims angle: Conceptual understanding

  • Contractual employment for a specific period.
  • Introduced by Industrial Relations Code, 2020.
  • Concerns: No minimum tenure, unlimited renewals.
  • Risk: Regular jobs becoming FTEs, job insecurity.
  • Impacts worker rights and labour market informalisation.
High-confidence PYQ links
Year Framing tags
2026 Factual recall, Multi-statement analysis
2024 Terminology-based question, Factual recall
2021 Multi-statement analysis, Factual recall
2020 Multi-statement analysis, Conceptual understanding
2020 Factual recall, Terminology-based question
2019 Multi-statement analysis, Factual recall
2019 Statement-based questions, Conceptual understanding
2016 Multi-statement analysis, Factual recall

Timeline

  1. Labour Market Flexibility

    Conceptual area

  2. Worker Rights

    Conceptual area

  3. Prelims 2016

    Multi-statement analysis, Factual recall

  4. Prelims 2019

    Multi-statement analysis, Factual recall

  5. Prelims 2019

    Statement-based questions, Conceptual understanding

  6. Prelims 2020

    Multi-statement analysis, Conceptual understanding

  7. Prelims 2020

    Factual recall, Terminology-based question

  8. Prelims 2021

    Multi-statement analysis, Factual recall

  9. Prelims 2024

    Terminology-based question, Factual recall

  10. Prelims 2026

    Factual recall, Multi-statement analysis

  11. Implementation complete, but workers still vulnerable

    Fixed-Term Employment (FTE), formally introduced by India's Industrial Relations Code, allows hiring for a specific period. While offering flexibility, it raises concerns about worker vulnerability due to the absence of minimum tenure and potential for unlimited renewals, contributing to job insecurity and the informalisation of the workforce.

See also

Fixed-Term Employment (FTE)
Labour Codes in India

Past papers

In the news

thehindu.com

Implementation complete, but workers still vulnerable

Fixed-Term Employment (FTE), formally introduced by India's Industrial Relations Code, allows hiring for a specific period. While offering flexibility, it raises concerns about worker vulnerability due to the absence of minimum tenure and potential for unlimited renewals, contributing to job insecurity and the informalisation of the workforce.

Try these PYQs

UPSC Prelims 2019 medium Economy Open full page

Consider the following statements :
As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018
1. if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers
2. no notice of termination of employment shall be necessary in the case of temporary workman

Which of the statements given above is/are correct?

UPSC Prelims 2026 hard International Relations Open full page

Which of the following international conventions have **not** been ratified by India?

1. Employment Policy Convention
2. Abolition of Forced Labour Convention
3. International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families
4. Geneva Convention Relative to the Protection of Civilian Persons in Time of War
5. Convention on Reduction of Statelessness

Select the answer using the code given below:

UPSC Prelims 2019 medium Social Issues & Schemes Open full page

Which of the following statements is/are correct regarding the Maternity Benefit (Amendment) Act, 2017?
1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave.
2. Enterprises with crèches must allow the mother minimum six crèche visits daily.
3. Women with two children get reduced entitlements.

Select the correct answer using the code given below:

UPSC Prelims 2016 medium Social Issues & Schemes Open full page

Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?

1. Undernourishment
2. Child stunting
3. Child mortality

Select the correct answer using the code given below:

UPSC Prelims 2020 hard Economy Open full page

With reference of the Indian economy after the 1991 economic liberalization, consider the following statements:

1. Worker productivity (per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased.

Which of the statements given above is/are correct?

Show 3 more PYQs
UPSC Prelims 2020 hard Ancient History Open full page

With reference to the period of Gupta dynasty in ancient India, the towns Ghantasala, Kadura and Chaul were well known as

UPSC Prelims 2024 easy Economy Open full page

With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of :

UPSC Prelims 2021 medium Social Issues & Schemes Open full page

With reference to the casual workers employed in India, consider the following statements:
1. All casual workers are entitled for Employees Provident Fund coverage.
2. All casual workers are entitled for regular working hours and overtime payment.
3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.

Which of the above statements are correct?